Cook & Bynum Capital Management’s 2018 Annual Investor Letter

Cook & Bynum Capital Management is a Birmingham, Alabama-based partner-owned money manager that was launched 18 years ago. It utilizes a Graham & Dodd value discipline investing in global public equities, and it holds a concentrated portfolio. When researching possible companies to invest in, Cook & Bynum Capital Management conducts a thorough analysis of their businesses, management teams and examines the current market needs. Recently, it has released its 2018 Annual Letter, in which it has reported being up 7.1% since inception, outperforming both the S&P 500 and the MSCI ACWI, which brought back 6.4% and 5.9%, respectively, in the same period. You can download a copy of a complete letter below. Cook & Bynum Capital Management also reported losing 9.9% net of all costs in Q4 2018, still beating the S&P 500 and the MSCI ACWI, which fell 13.5% and 12.7%, respectively.

“The Fund currently owns nine high-quality businesses. As this is our annual letter, we provide an update on each of these companies below, including an expanded profile of the Fund’s investment in Anheuser-Busch InBev and a tribute to Arca Continental’s CEO Francisco Garza at his retirement. Overall, the Fund’s portfolio changed meaningfully during 2018 as we deployed all available cash to make new investments or to increase the size of existing ones. These investments were entirely in companies that are based outside of the United States, and we even sold one of our U.S. investments early in the year to free up capital to invest internationally. Our interest in ideas outside of the U.S. was influenced by what befell global stock markets last year.”

You can download a copy of Cook & Bynum Capital Management’s 2018 annual investor letter here: